Watsco Inc (WSO-B)

Wholesale-Hardware & Plumbing & Heating Equipment & Supplies

Latest Price

$303.30

TTM P/E

25.99

Normalized P/E

23.03

TTM Div Yield

4.06%

Fwd Div Yield

4.06%

Book Value

78.70

P/B Ratio

3.85

Valuation metrics

EPS: $12.25

Book value / share: $73.39

Formula: √(22.5 × EPS × BVPS)

Graham Number

$142.22

53% downside

Norm. op. income: $720M (median of 7yr)

Tax rate: 20%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$162.39

46% downside

Base FCF: $535M (median of recent 5yr)

Growth: 12%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$402.30

+33% upside

EPS: $12.25

Target P/E: 23×

Formula: EPS × P/E

P/E Fair Value

$281.75

7% downside